CEOs warn against falling into AI’s efficiency trap: The biggest risk is ‘a better version of yesterday’

In today’s CEO Daily: How AI is changing the nature of leadership

The big leadership story: Uber CEO says layoffs will equal rider savings.

The markets: In the red as Treasury yields and the price of oil rise

Plus: All the news and watercooler chat from Fortune.

Good morning. Lee Williamson, Fortune’s Asia editorial director, writing from Macau, where we recently wrapped the inaugural Fortune Leaders Forum. We convened Fortune Global 500 executives, founders, experts, and policymakers to discuss how the convergence of multiple headwinds—AI breakthroughs, rising geopolitical tensions, changing demographics—is reshaping the global business landscape. In this era of volatility, we asked CEOs how they are building strategies for an unproven future, and how they make decisions before the path is clear. A recurring theme throughout the day was not just how AI is transforming companies, but how technology is changing the nature of leadership itself. Here are my three takeaways:From efficiency to reinvention. ServiceNow’s Asia managing director Melissa Ries set the scene: the company’s research shows that while “about 60% [of companies] have AI agents; only 5% have redesigned their workflows.” Several leaders discussed the need to move away from thinking of AI as an efficiency tool to be bolted on to existing workflows, to a technology that mandates an enterprise redesign. “The biggest risk is [using] AI to improve today’s processes, so basically you get a better version of yesterday,” said Malina Ngai, Group CEO of 185-year-old health and beauty retailer AS Watson. “That loses sight of how we can use AI… to help us to reinvent how we serve our customers.” The company’s key metric to define success? A “customer love score,” which AS Watson sees improving as AI tools give staff more time to spend serving customers.........

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